European stocks edged lower on Friday as stronger-than-expected U.S. inflation data revived Fed rate hike bets and new data from China pointed to persistent deflationary pressures in the world’s second-largest economy.
Investors were also spooked by comments from Bank of England Governor Andrew Bailey that future interest rate decisions by the central bank would continue to be tight.
In economic releases, there was an upside revision to French September inflation.
Spanish annual inflation also stood higher for a third consecutive month, raising pressure on the European Central Bank to keep interest rates at an elevated time for some time.
Eurozone industrial production rose more than expected in August, offering some respite to investors worried about growth amid the conflict unfolding in the Middle East.
The pan European STOXX 600 was down 0.6 percent at 450.98 after closing 0.1 percent higher on Thursday.
The German DAX dropped 0.6 percent, while France’s CAC 40 and the U.K.’s FTSE 100 were down around half a percent each.
TotalEnergies rose 1.3 percent, BP Plc rallied 2.1 percent and Shell added more than 1 percent as crude prices jumped nearly 3 percent on fears that the fighting between Israel and Hamas could destabilize the Middle East and crimp global supply.
British wealth manager St. James’s Place plunged more than 15 percent on reports it is under pressure from regulators to overhaul its fee structure.
Avon Protection, the manufacturer of gas masks, helmets and body armor, jumped 4.7 percent after it reported stronger trading in the second half of its financial year to September.
Emerging markets asset manager Ashmore plummeted 6.6 percent after it reported an 8 percent drop in assets under management in its fiscal first quarter.
Sartorius, a German pharmaceutical and laboratory equipment supplier, plunged 11 percent after reporting a decline in sales for the first nine months of 2023 and cutting its FY23 outlook.
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